Research Summary

The article discusses the competition between Penpie and Equilibria in the ‘Pendle Wars’. Both launched in June 2023 and have risen to $43m and $30m TVL respectively. The success of these projects is dependent on the success of Pendle itself. Their relative success to each other depends on their ability to execute. DeFi wars have so far proven to trend to monopolistic and oligopolistic market structures, so there could be a winner takes most outcome, or room for both to thrive.

Actionable Insights

  • Monitor Penpie and Equilibria: Penpie and Equilibria have emerged as the main contenders in the ‘Pendle Wars’. Their progress and the impact on their TVL should be monitored.
  • Assess Risk: All new DeFi protocols carry high risk, and the protocols covered in this report add an additional layer of smart contract and governance risk on top of Pendle.
  • Understand Pendle Finance: Pendle Finance enables the yield-trading of yield-bearing crypto assets based on the concepts of bonds. Understanding its workings can provide insights into the ‘Pendle Wars’.

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